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Saturday, March 26, 2016

Amid uncertainty in sealing deal: All set for WTO ministerial talk

Asjadul
Kibria

NAIROBI, Dec 14: Immediately
after arrival at the Jomo Kenyatta International Airport in Nairobi, the
capital of Kenya, one thing becomes clear. The country is 'very excited' for a
mega international gathering.

From immigration to exit points, all the staffs are especially alert for not
only security, but also for those who have come to join the 10th Ministerial
Conference of the World Trade Organisation (WTO). Young students are working as
guides for the delegates.

Already the Kenyan government has estimated that the conference would create
'flow' of at least $21 million into the economy just in five days.

This is for the first time in 20 years of the organisation's history the
highest decision-making conference is going to take place in an African
country.

Kenyat International Conference Centre, where the four-day meet kicks-off today
(December 15) and continues for December 18, appears quite vibrant, as
delegates from more than 150 countries are busy with their 'final warm up' to
seal a deal.

But sealing a deal is still very uncertain for several reasons.

Two mega regional trade arrangements already cast shadow on WTO. One is
Trans-Pacific Partnership (TPP), a regional arrangement of 12 countries (USA
and 11 other Asia-Pacific countries) having 40 per cent share of global trade,
finalised this year.

TPP contains 'WTO-plus' obligations for the member countries although Roberto
Azevedo, director general of the organisation, said it is not against the
multilateralism.

Another one is Transatlantic Trade and Investment Partnership (TTIP). The mega
regional arrangement is proposed between the US and the European Union (EU).
There is, however, no formal agreement signed yet.

The recent terrorist attack in Paris is also in the backdrop. One can recall
that Fifth Ministerial Conference of WTO took place in the Qatari capital Doha
in 2001 immediately after 9/11 terrorist attack in New York. In that
conference, members of the organisation adopted Doha Development Agenda (DDA)
or Doha round of multilateral trade negation.

But after 14 years, successful completion of Doha round is at a stake. The
developed countries have little interest for continuing the prolonged
negotiation while the developing countries want to continue it for a successful
completion. This rift will dominate Nairobi talk.

Bipul Chatterjee, executive director of Consumer Unity and Trust Society
(CUTS), an international research organisation, identifies the use of term
'Doha Development Agenda' as major obstacle to reach a deal in Nairoi.

"The US wants it not to be in the Nairobi ministerial declaration, and if
it is mentioned then it should be said that it is closed," Bipol told to
FE. "But it is being opposed by India and many other developing
countries."

The Least Developed Countries (LDCs) are mostly in favour of continuing Doha
negotiation although they are not obliged to make any commitment in this round.

Shameem Ahsan, Bangladesh Ambassador and permanent representative in Geneva,
earlier said DDA issues are important and they are not dead.

Bangladesh, the group coordinator of LDC, already finds that the country has
nothing to lose, if Nairobi ministerial ends without a deal. But this
proposition is not applicable for the LDCs as a whole.

Commerce Minister Tofayel Ahmed is leading a 23-member delegation of the
country, and has to play critical role for a common position of the LDCs.

In this connection, he met trade ministers and officials of other LDCs on
Monday afternoon. It was actually 'LDC ministerial' where ministers discussed
their common interests.

The climate summit (COP21) that ended in Paris on Saturday, also becomes an
indirect barrier to Nairobi talk, as global leaders and their officials become
exhausted.

Thus trade ministers and high-level senior government officials, representing
different member countries, have to work hard in these four days, so that a
deal could be sealed to prevail multilateral trade regime.